QUESTION $18$

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

equilibrium price is ambiguous $($or indeterminate$)$ and equilibrium quantity decreases

equilibrium price is ambiguous $($or indeterminate$)$ and equilibrium quantity increases

equilibrium quantity is ambiguous $($or indeterminate$)$ and equilibrium price increases

equilibrium quantity is ambiguous $($or indeterminate$)$ and equilibrium price decreases